Posted by jpleow > 2012-06-10 13:07 | Report Abuse

For those who think of buying OSK, be careful, foreign funds could be selling. Looking at the 30 largest shareholdes of OSK from 2011 Annual Report agiain, I found names like
(a)'JP Morgan CLR Corp for Third Avenue Global Value Fund LP' holding 15.2M shares, 1.62%, 4th largest shareholder.
(b)'Morgan Stanley & Co. International PLC (Firm A/C)' holding 6.29M shares, 0.67%, 16th largest shareholder.
etc...
From past experiences, foreign funds hate unfair deal, they tend to sell on it. This may explain why the price drop so fast.

However, I also found out from Bursa announcements that one of the director of OSK is buying indirectly:
Mr. Wong Chong Kim, bought 200,000 shares at RM1.50 on 1/6/12 (indirectly bought by his son), bought 100,000 shares at RM1.40 on 4/6/12 (indirectly bought by his wife). However, he is not a major shareholder, only has 0.26% direct & 0.13% indirect shares.

There are a lot of uncertainty in OSK at the moment. You must be prepared to hold on to it for long term & prepared to average down if you want to buy. The whole merger will only be completed around 4th quarter this year, EGM should be held around then. The risk is high now, but the return may be high. 'High risk high return' means you can make a lot of money but you may also lose a lot of money.

I've been investing in OSK shares for a many years. My net cost (total buy - total sell - total net dividends) is low, only RM0.25 per remaining shares. Hence I can wait for the outcome of the proposal. I may or may not average down.

Good luck.

Posted by Namoyaki Takarajima > 2012-06-10 14:10 | Report Abuse

Bro Mat Cendana! Ya! and 'Money For Nothing' from Dire Straits is my all time fav too, because you see, Money is really nothing when we are in here. Happy or Sad, win gain or kena teruk with share market we are still happyly writing comments, making headlines in here! Still can laugh hahaha... Crazy! Thank you for the Telegraph Road bro! Listening to it now.

Posted by Mat Cendana > 2012-06-10 16:02 | Report Abuse

jpleow: Thanks for the information and caution. These are new factors - both negative and positive - to take into consideration. Volume had been rather heavy over the past week since the selling announcement and it's possible those who want out have already disposed of their shares. But one can never be certain because maybe they are selling in batches so as not to push the price too low. Only time will tell.

On the positive side, when a director buys, it should be duly noted. He might know something based on indications by the boss on what's the next move. If he or any other director were to buy again next week, that might indicate some decision that should please the minority shareholders (and push the price up).

If the EGM is in the 4th quarter, that's sounds a bit late. I would expect the major shareholder to push for the deal to go faster since you don't know what the economic scenario is going to be like a few months from now. Buyers should remember this "High risk, high return (or loss)" probability when making a decision.

Posted by jpleow > 2012-06-10 16:26 | Report Abuse

There are many approvals they need to pass, they cannot rush it. See extract from the attachement of the original bursa announcement below.

--------------------------------------
9. APPROVALS REQUIRED
The Proposals are subject to, amongst others, the following approvals being obtained from the following authorities/parties:-
(i) the Minister of Finance (via BNM) for the proposed acquisition by RHBC and the proposed disposal by OSKH of the entire issued and paid-up share capital of OSKIB, which was obtained on 27 April 2012;
(ii) the Securities Commission Malaysia (“SC”) for the change in shareholders of OSKIB and the change of controller (as the case may be and to the extent applicable) for the companies within the OSKIB Group that hold capital markets and services licenses issued by the SC, which was obtained on 24 May 2012 subject to certain conditions;
(iii) the Labuan Financial Services Authority for the change in the ownership of OSKL, which was obtained on 27 March 2012;
(iv) the appropriate foreign governmental authorities in respect of OSKIB’s overseas business operations;
(v) the shareholders of OSKH at an extraordinary general meeting (“EGM”) to be convened;
(vi) the shareholders of RHBC at an EGM to be convened;
(vii) Bursa Securities for the listing of and quotation for the Consideration Shares on the Main Market of Bursa Securities; and
(viii) any other relevant approving authorities and/or parties, where required.
Barring any unforeseen circumstances, the submission to the relevant authorities will be made within three (3) months from the date of this announcement.

13. ESTIMATED TIMEFRAME FOR COMPLETION OF THE PROPOSED DISPOSAL
Barring any unforeseen circumstances and subject to all the requisite approvals being obtained (as set out in Section 9), the Proposed Disposal is expected to be completed in the fourth quarter of 2012.
-------------------------------------

Posted by chongkonghui > 2012-06-13 17:19 | Report Abuse

Selling pressure is gone. Bouncing back soon?

Posted by Fat Cat Tim Buddy > 2012-06-13 17:22 | Report Abuse

i'll buy osk if the price drop till 1.3 =D

Posted by franksoweto > 2012-06-14 02:58 | Report Abuse

good info - thanks JPLeow for sharing :)

Posted by chongkonghui > 2012-06-14 09:35 | Report Abuse

Whoever dislike the decision by OSK boss has sold their shares. No support level at above 1.35. Buy now before it bounce back to 1.50 or higher (I don't know when... but it will).

Posted by kcfan > 2012-06-15 21:51 | Report Abuse

侨丰控股（OSK，5053，主板金融组）董事丹斯里黄宗华表示，该公司脱售旗下的侨丰投资银行给兴业资本（RHBCAP，1066，主板金融组），换取后者约10%股权后，该公司将照常发展现有产业及借贷业务，并寻求新商机，不会将资产全部回退给股东。
黄宗华接受《星洲财经》联访时表示，一旦完成并购，该公司将继续照常营业为股东提供价值，即在持有兴业资金10%股权之余，该公司也会寻求良好商机，特别是该公司拥有经验丰富的人力资源，过去良好经营记录即是好证明。
他指出，企业并购活动往往引起市场疑问​​、臆测或什至投机，而侨丰控股脱售“皇冠上的珠宝”－－投资银行业务，换取兴业资本的股权及现金，这项计划免不了引起市场的各种臆测与反应。
他认为，在持有兴业资本的10%股权后，该公司将可在其旗下的3项核心业务董事部委派代表（需要各有关当局批准），并将业务转向更大平台及扩大资产负债表，加上拥有雇员公积金局（EPF）及中东的阿布扎比​​金融集团为共同股东，预料可为投资银行业务提供更大的发挥及发展空间。
他指出，由于交易还在进行，所以目前谈论发展其他商机详情尚是言之过早，而且董事部也将决定未来业务发展事宜，目前主要专注于完成上述交易，过后才谈论未来的业务。

Posted by kcfan > 2012-06-15 21:52 | Report Abuse

股价下跌
未反映合并价值
询及最近侨丰控股的股价大幅度下跌，黄宗华​​表示，他不能确定的真正原因，惟让投资者以本身智慧对该公司的价值进行评估。
一起接受访问的侨丰投资银行首席执行员余清福表示，合并计划可能在短期内未能确实反映真正价值，可能低估业务前景及股东价值。不过，最近其股价跌至1令吉35仙左右公水平，比其每股资产值2令吉43仙大幅度折价44%。
余清福认为，若该公司脱售投资银行业务后成为PN17公司，他们将会向有关当局申请豁免以保持原有地位。惟他相信这将不会发生，因该公司除了持有兴业资本10%股权的收益外，也将会继续推动其他现有业务，甚至寻求其他商机。
近期侨丰控股股价败退，自5月底公布脱售投资银行业务后，就从当时的1令吉74仙水平，一路跌至目前的1令吉36仙左右，跌幅达22%，造成市场议论纷纷。

Posted by nahcee > 2012-06-16 18:09 | Report Abuse

hahaha...after fall so much n accumulate for 2 weeks. Try to push the price back to sell to small shareholder and make profit again.

Posted by dknycom > 2012-06-16 19:58 | Report Abuse

OSK will rebound to RM 1.50 above level again in short term?

Posted by casual_investor > 2012-06-16 23:04 | Report Abuse

Do you trust a company who never look after investor?

Posted by jpleow > 2012-06-17 16:30 | Report Abuse

OSK remind me of what happened to BjToto many years ago.

It was around 2002, foreign funds was dumping BjToto shares & the price drop sharply after they discovered that there was a substantial sum of intercompany loan provided by BjToto to BjLand, the major shareholder of BjToto, which was under heavy debt. They thought that it was unfair since BjLand only had around 50% of BjToto shares, making full use of BjToto cash was unfair to minority shareholders. BjToto management was under pressure & they came out with a scheme to pay out bonus ICULS to all shareholders so that BjLand can sell this ICULS & repay the intercompany loan. It was fair since all shareholders received they fair shares of ICULS entitlement according to their shareholdings.

I remember this since I bought BjToto shares at low prices then, thinking that even if the intercompany loan was not repayed, being a cash cow with strong cash flow, BjToto would continue to pay good dividends. My bet was right, when the dust settled, BjToto shares start rising & it gave out a lot of capital repayments & special dividends to help BjLand repay its debt in the following few years. Now BjToto is the top performing stock in my portfolio!

I brought this up since there are similiarity between these 2 cases, both involved violation of minority shareholder rights & foreign funds selling. However, the reactions were different in that BjToto management actually admitted they were wrong by implementing a solution, whereas OSK management kept on defending its proposal & saying it has done nothing wrong.

In StarBiz 16/6/12 news, title ‘OSK may look at new core business’ (http://biz.thestar.com.my/news/story.asp?file=/2012/6/16/business/11492021&sec=business), Ong said “There's nothing wrong with the company; why should we pay out everything?” Why not? The fairest way is to distribute all sale proceeds to all shareholders according to their shareholdings, not letting the management taking full advantage of it.

Ong also said “The transaction, estimated to take another three months for completion,… On whether there would be a special dividend, Ong says that can be decided only after the deal is completed, possibly in another three months.” I think he is merely buying time. If OSK wanted to acquired new business, it need a lot of cash, it will probably use up all the cash from RHBCAP, how is it going to pay out the special dividend?

The OSK case is different from BjToto case in that it will have little earnings after the merger, even though it has a lot of assets, it is locked away from minority shareholders unless there is a capital repayment.

I hope there are more than 25% minority shareholders to vote against in the EGM!

Posted by Fat Cat Tim Buddy > 2012-06-18 19:38 | Report Abuse

damn, i miss the boat

Posted by wup6199 > 2012-06-18 20:40 | Report Abuse

SStill can invest in this counter????

Posted by casual_investor > 2012-06-18 22:25 | Report Abuse

If you are brave enough :-)

Posted by dknycom > 2012-06-18 22:28 | Report Abuse

i have sold RM 1.43 today. quite lucky.
Looking for next buy at RM 1.35 again very soon.

Posted by Marcus Beh > 2012-06-18 23:21 | Report Abuse

Dknycom.... You have a lot a confidence....!

Posted by dknycom > 2012-06-18 23:30 | Report Abuse

WITH CURRENT ECONOMY CONDITION, ONLY CAN GO FOR SHORT TERM BUY.
BUY FAST & SELL FAST. GO FOR SMALL MARGIN FOR SAFE PLAY.
WITH IN 10 - 20 CENTS PROFIT, FINE FOR ME ALREADY.

Posted by Mat Cendana > 2012-06-19 22:23 | Report Abuse

dknycom: That's my strategy too, for the same reasons. Markets are volatile nowadays where sentiment can change just like that. That's a good thing for traders (but not for long term investors) where the market creates many opportunities to buy at lower prices and then cash out when there's a small profit.

I only buy when I have enough funds to settle the contracts. This way, I have the luxury of waiting for the price to go up. However, if a counter goes up within the contra period, I will sell... even for profits of just 5% or so. It's better to make small profits (percentage-wise) and have the capital ready for the next opportunities than to sit around not being able to buy because my money is stuck in some counter.

But I don't follow this strategy all the time though. With companies that I really like, am very confident with plus have dividends (Mudajaya for instance), I'd wait and not cash in... yet.

Posted by dknycom > 2012-06-19 23:28 | Report Abuse

OSK will drop back again to RM 1.35 level again, if no more good news coming in by this Friday...

Posted by Julius > 2012-06-22 13:29 | Report Abuse

What will happen to osk common stock holder if osk merge with rhb? Can anyone advice please?

Posted by jpleow > 2012-06-23 12:05 | Report Abuse

To Julius:
(1) The number of shares you are holding will be the same after merger, OSK (OSK Holdings) is selling its assets (ie mainly OSK Investment Bank) to RHB in exchange for RHBCAP shares & cash.
(2) There will NOT be any capital repayment to distribute the RHBCAP shares & cash received. (Ong wants to have influence in the RHB boards, probably get elected to be a director.)
(3) They will be looking for new business & apply for exemption for PN17 from Bursa.
(4) The price drop sharply since Minority shareholders think that the deal is unfair without any capital repayment or special dividends. Some also worried of the PN17.

Read back on the earlier discussion in this thread & you will have a better understanding.

Posted by danielttoob > 2012-06-28 07:40 | Report Abuse

Any good advice on this counter??

Posted by danielttoob > 2012-07-03 00:54 | Report Abuse

Time will prove the fact

Posted by Mat Cendana > 2012-07-06 09:55 | Report Abuse

Something is happening at OSK - why the sudden rise in price??

Posted by Jonathan Keung > 2012-07-06 10:22 | Report Abuse

OSK confirm they will not be classified under PN17 by SC after the sale to RHB

Posted by Mat Cendana > 2012-07-06 16:15 | Report Abuse

That's good. But I was hoping they would announce something more... like giving a special dividend from the cash part of the sale. Or what they are going to do with the RHB Capital shares. But whatever, I'm glad it has gotten off the bottom after the sharp fall.

Posted by my101home > 2012-07-06 23:56 | Report Abuse

I sold out all the shares, good timing to minimise the loss. I thought OSK was definitely not classified under PN17 as it maintains other assets after the sale, but why did the market react so much on the news? overreacted?

Posted by casual_investor > 2012-07-07 00:14 | Report Abuse

Market won't move if there is no "Market Makers". When a stock is oversold there will tend to be rebound, that is the time the "Market Makers" show time creating volume to attract buying interest. So never trust what you see, but see through what is behind the prices & volume which could tell you the real stories. Just my 2cts view.

Posted by talk2pkc > 2012-07-09 05:59 | Report Abuse

OSK is cash rich and short term is attraction but not necessary , if it continue to head North, 1.70 ish will b gd opportunity to get off !!

Posted by megarich > 2012-07-09 08:24 | Report Abuse

Osk still has a good potential as we know they have fund to invest or declare special dividend for the share holder. This meant the price will fly by that time if they announce special dividend.

Posted by kojack_smile > 2012-07-10 12:24 | Report Abuse

Hi everyone. I notice that OSK has the trend of paying interim dividend in August for the past years. I wonder whether this will boost the price further up from now when the announcement comes out in next month. Also, the structured warrants that issued by AmBank will mature on 08/08/12, i hope there will be no more structured warrants coming up for OSK. Now i am looking forward to know when will be the EGM.

Posted by Mat Cendana > 2012-07-29 22:39 | Report Abuse

OSK has been rather quiet over the past couple of weeks or so. Waiting for news of the sale to RHB Capital. To the major shareholder: Come on lah... what's in it for us? Surely OSK can come up with a special dividend from the cash part of the sale. AT LEAST. That should be around 0.13 sen per share. But whatever, please announce something for us minority shareholders.

Posted by victor168 > 2012-07-31 14:54 | Report Abuse

anybody know when dividend will be announce ?

Posted by nahcee > 2012-07-31 15:15 | Report Abuse

waiting for it also. Today volume very thin.

Posted by nahcee > 2012-08-02 10:19 | Report Abuse

no news is good news ?

Posted by hema > 2012-08-06 13:49 | Report Abuse

price keep going down!!! To hit the predicted TP of 2.05 will take ages i think ;(

Posted by Mat Cendana > 2012-08-06 14:07 | Report Abuse

Don't know about 2.05 but something along 1.70 or so should be achievable not too far in the future. Any sort of news should see interest in it returning. The biggest impetus would be on the sale to RHB Capital - there should be something about it soon. Maybe this is a good time to accumulate; selling for a 10% gain in the next upswing.

Posted by weewee > 2012-08-08 19:23 | Report Abuse

EGM is on 24th Aug 2012. Time to accumulate or price to go up? How about special dividend? Hmmmm... got to wait and monitor.

Posted by nahcee > 2012-08-09 11:14 | Report Abuse

dunno it will pass the resolution or not ? As so many ppl get con on this stock. Need 75% shareholder approve ?

Posted by EmoTrader > 2012-08-09 11:28 | Report Abuse

BUY Below 1.40!

Posted by chongkonghui > 2012-08-09 11:29 | Report Abuse

Am still waiting for it to break 1.40. Queue to buy at 1.39

Posted by Mat Cendana > 2012-08-09 15:02 | Report Abuse

weewee- You are right about the EGM http://bit.ly/RCnGaW And it will be about the sale to RHB Capital. Now this will be interesting - the major shareholders will have 10% of RHB Capital. Good for them but why should minority shareholders vote for the disposal? What's in it for us? Why should we let them use OUR share of it for their own power base?

MBf is giving a 30 sen special dividend after selling its card business to AMMB. Now that's very fair to the minorities. But what about OSK?

Posted by edlim > 2012-08-09 16:05 | Report Abuse

Yes. If it is a 'BIG' thumbs down from minority holders then perhaps OLH might consider to have some special dividends etc. However, sigh....... think it not gonna happen.

Posted by jpleow > 2012-08-09 16:11 | Report Abuse

Mat, I agree with you, I will vote against the resolutions in the EGM for sure, if I haven't sell them before the EGM.

To me, it is either
(1) sell the OSK shares if the price goes up (no point investing in a company if you don't like the management) or
(2) vote against the resolutions in the EGM & turn down the unfair deal.

Posted by weewee > 2012-08-09 19:18 | Report Abuse

Mat Cendana and jpleow, do you know the resolutions that waiting to be passed?

Posted by babu > 2012-08-09 20:29 | Report Abuse

I've just read through the entire Circular including the recommendations of the BOD and the IAL from Nomura. As a shareholder, I think this is as good a deal as we can get (1.77x BV) and I honestly can't see anything to indicate that the disposal is not fair and reasonable. As for the pet peeve expressed by some shareholders here that there is no Special Dividend announced "yet" - I feel that we should see things in perspective i.e. that of the RM208.5m in cash, RM 20m (est expenses) + RM180m (repayment of RCF currently RM 247m outstanding on OSK Capital's books with various financial institutions - balance cash left only RM8.5m (see Pg 17 Section 2.5 spell out clearly the rationale/utilisation of the RM 208.5m cash proceeds). How to announce/give "specials" ??? I believe that in due time,..... perhaps after the merger is completed by Dec 2012 (as OLH once mentioned clearly in his interview with Star Newspaper on 16 Jun 2012). Be patient - and have faith. Look at the past dividend record for OSK and judge for yourself -I mean it, go and "dig" it out yourself for every year since FY03 (for further back in time, I no have but you guys can always go and changkol it out youself). OSK has never failed to give us respectable DPS year in year out (even in a "relatively bad" year FY 2004 also got interim 5 sens + final 1 for 45 Treasury Shares !) For roaring good years, we gotten 12.5 sens for FY 06, 20 sens for FY 07 - these were oustanding years ! For the other "average" years (7.5 sens for FY 03; FY 05; FY 08; FY 09 and FY 10. Even the recently concluded "relatively mediocre" FY 11, we still got 4.5 sens + 1 for 40 TS). Also not forgetting, the "extras" (by way of dividend-in-species) we got our OSKVI shares (in May 09)and OSK Property shares (Sep '08) as well as a one-time Bonus Issue shares (1 for 4 in Jan '10). Swee swee right ? I hope this piece of "sell koyoke" by me can somewhat ameliorate the somewhat misplaced feelings of "unfairness" because of no "sweetener" just yet ! I am convinced that we shareholders will be better off with this merger with RHBCap (dun forget OLH owns more than 30++% himself - his interests are inextricably aligned with us !) In short, I say let's not cut our nose to spite our face - vote wisely, vote for the merger....

Posted by Mat Cendana > 2012-08-10 00:27 | Report Abuse

weewee: Sorry, I don't have any other information beyond what is available at the BSKL/bit.ly link above. As you can see, the document only mentions the assets to be sold.

While there may be potentials from this sale, it's a bit too far in the future. The price may be "fair enough" but we must also remember that OSK is selling off its crown jewels. It's only natural for minority shareholders to have an idea of what lies ahead after the sale. Yes, cutting off the nose would not be beneficial to all involved - to prevent this lose-lose situation from happening, OLH will have to address and handle the discontent simmering among some. Plus confusion and uncertainty about what lies ahead. That's all we are expecting and I'd say it's reasonable.